Putting the H into H2O. Hydrogen fueling specialist Air Products has entered into a long-term agreement with Nestlé Waters to supply hydrogen and hydrogen fueling station technology for Nestlé's Dallas, Texas, facility. The hydrogen will be used to fuel a fleet of 32 Class I hydrogen fuel-cell-powered forklifts.
Power shift. H-E-B, a Texas-based supermarket chain, has purchased 14 PowerEdge fuel cell systems and a PowerTap hydrogen generator/hydrogen station from Nuvera Fuel Cells. The fuel cell systems will power Class II forklift trucks used at H-E-B's perishables distribution center in San Antonio, Texas.
Tea time. Tata Tea Group, one of the world's largest tea companies, has selected DSC Logistics as its lead logistics partner in the United States. DSC will provide supply chain and logistics support for Tata Tea's three main brands in the United States: Tetley Tea, Eight O'Clock Coffee, and Good Earth tea and coffee. DSC will also offer logistics support for Empirical Group LLC, which provides tea and coffee to Tata Tea Group's food-service customers.
On the Prairie. Staples has selected RedPrairie's Workforce Management solution for use in its U.S. retail supply chain operations. Nearly 1,500 associates will use the solution in distribution centers located near Hagerstown, Md.; Killingly, Conn.; Terre Haute, Ind.; and Rialto, Calif.
In addition, RedPrairie has implemented its Duty Management solution at Houston Bottling and Co-pack, a Scotland-based company that offers bottling and co-packing services for the Scotch whisky industry. The Duty Management solution has reduced time spent on customs returns from one day to 15 minutes.
More time for tea. Milo's Tea Co. has signed a contract for dedicated contract carriage service with Ryder System, a transportation and supply chain management solutions company. Under the multiyear contract, Ryder will provide dedicated delivery service for Milo's Tea products from its distribution center in Bessemer, Ala., to retail stores throughout the state.
In addition, Mazda North American Operations has extended and expanded its contract with Ryder System to manage the distribution of auto parts in Mexico. Under the arrangement, Ryder will manage cross-border transportation of Mazda parts into Mexico and distribution to all Mazda dealers in Mexico. The extended contract will run through October 2011.
To Suhr, with love. Migros, a Swiss grocery retailer, will install Witron's Order Picking Machinery (OPM) system in its distribution center in Suhr, Switzerland. When the installation is complete, Migros will use the state-of-the-art logistics center to supply some 600 stores throughout Switzerland.
Now getting a good night's sleep. Mattress and pillow manufacturer Tempur-Pedic has selected Optiant's PowerChain inventory and supply chain optimization suite. The company will use the software to set optimal safety stock levels, position inventory, and establish rules for replenishment.
Fleet services on tap. Nestlé Waters North America has selected I.D. Systems to provide wireless vehicle management technology for its industrial trucks. The bottled water company will initially deploy I.D. Systems' PowerFleet Vehicle Management System at two sites, with plans for expansion to over 100 sites worldwide.
Power play. The Department of Defense has purchased 19 Class 1 GenDrive fuel cell power units from Plug Power, a provider of clean energy solutions. Plug Power's GenDrive units will be commissioned at a U.S. Army Forces Command facility in Fort Lewis, Wash., where they will power a fleet of sit-down counterbalanced lift trucks.
Cold hard facts. United States Cold Storage (USCS), a public refrigerated warehousing company, has implemented new ruggedized mobile devices from Psion Teklogix at over 30 sites nationwide. USCS is in the process of phasing out its older narrow-band units and converting over to the 802.11 technology standard with Psion Teklogix's 7530 G2 handheld and 8525 G2 vehicle-mount computers.
Gobbling it up. West Liberty Foods has selected the FreightMaster hosted transportation management system from Next Generation Logistics to manage its freight and transportation operations. West Liberty Foods, a turkey processor based in West Liberty, Iowa, will use the TMS to improve visibility, reduce its transportation spend, and improve service levels.
A black and white issue. Chico's FAS Inc., a women's clothing company, has licensed products from JDA Software to improve its merchandise planning, demand forecasting, inventory management, and customer service levels. Also included in the deal is JDA's Workforce Management software, which will help Chico's manage labor requirements within its stores. The clothier's retail brands include Chico's, White House/Black Market, and Soma Intimates.
However, that trend is counterbalanced by economic uncertainty driven by geopolitics, which is prompting many companies to diversity their supply chains, Dun & Bradstreet said in its “Q4 2024 Global Business Optimism Insights” report, which was based on research conducted during the third quarter.
“While overall global business optimism has increased and inflation has abated, it’s important to recognize that geopolitics contribute to economic uncertainty,” Neeraj Sahai, president of Dun & Bradstreet International, said in a release. “Industry-specific regulatory risks and more stringent data requirements have emerged as the top concerns among a third of respondents. To mitigate these risks, businesses are considering diversifying their supply chains and markets to manage regulatory risk.”
According to the report, nearly four in five businesses are expressing increased optimism in domestic and export orders, capital expenditures, and financial risk due to a combination of easing financial pressures, shifts in monetary policies, robust regulatory frameworks, and higher participation in sustainability initiatives.
U.S. businesses recorded a nearly 9% rise in optimism, aided by falling inflation and expectations of further rate cuts. Similarly, business optimism in the U.K. and Spain showed notable recoveries as their respective central banks initiated monetary easing, rising by 13% and 9%, respectively. Emerging economies, such as Argentina and India, saw jumps in optimism levels due to declining inflation and increased domestic demand respectively.
"Businesses are increasingly confident as borrowing costs decline, boosting optimism for higher sales, stronger exports, and reduced financial risks," Arun Singh, Global Chief Economist at Dun & Bradstreet, said. "This confidence is driving capital investments, with easing supply chain pressures supporting growth in the year's final quarter."
The firms’ “GEP Global Supply Chain Volatility Index” tracks demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses.
The rise in underutilized vendor capacity was driven by a deterioration in global demand. Factory purchasing activity was at its weakest in the year-to-date, with procurement trends in all major continents worsening in September and signaling gloomier prospects for economies heading into Q4, the report said.
According to the report, the slowing economy was seen across the major regions:
North America factory purchasing activity deteriorates more quickly in September, with demand at its weakest year-to-date, signaling a quickly slowing U.S. economy
Factory procurement activity in China fell for a third straight month, and devastation from Typhoon Yagi hit vendors feeding Southeast Asian markets like Vietnam
Europe's industrial recession deepens, leading to an even larger increase in supplier spare capacity
"September is the fourth straight month of declining demand and the third month running that the world's supply chains have spare capacity, as manufacturing becomes an increasing drag on the major economies," Jagadish Turimella, president of GEP, said in a release. "With the potential of a widening war in the Middle East impacting oil, and the possibility of more tariffs and trade barriers in the new year, manufacturers should prioritize agility and resilience in their procurement and supply chains."
The third-party logistics service provider (3PL) Total Distribution Inc. (TDI) is continuing to grow through acquisitions, announcing today that it has bought REO Processing & REO Logistics.
Terms of the deal were not disclosed, but REO Processing & REO Logistics is headquartered in West Virginia with 10 facilities across West Virginia in Parkersburg, Vienna, Huntington, Kenova, and Nitro as well as in Atlanta, GA.
Headquartered in Canton, Ohio, TDI is a wholly owned subsidiary of Peoples Services Inc. (PSI). The combined TDI and PSI businesses operate over 12 million square feet of contract and public warehouse space located in 65 facilities in eight states including Michigan, Ohio, West Virginia, New Jersey, Virginia, North Carolina, South Carolina, and Florida.
As an asset-based 3PL, the PSI network offers a range of specialized material handling and storage services including many value-added activities such as drumming, milling, tolling, packaging, kitting, inventory management, transloading, cross docking, transportation, and brokerage services.
This latest move follows a series of other acquisitions, as TDI bought D+S Distribution, Inc. and Integrated Logistics Services Inc. in May, and Swafford Trucking, Inc., Swafford Warehousing, Inc., and Swafford Transportation, Inc. in February. The company also bought Presidential Express Trucking, Inc. and Presidential Express Warehousing & Distribution, Inc. in 2023.
The freight equipment original equipment manufacturer (OEM) Wabash will use a federal grant to launch a project with the University of Delaware that will save electricity by incorporating lightweight solar panels into refrigerated trailers and truck bodies, the Indiana company said today.
The three-year project, set to begin next year in partnership with the University of Delaware’s Center for Composite Materials, is intended to play a pivotal role in making zero-emission mid-mile transportation a commercially viable option, Wabash said.
Those materials are important because batteries powering heavy trucks can weigh between 5,000 to 10,000 pounds, often limiting the payload capacity and drawing significant energy from the electrical grid when charging, the partners said.
“This project has the potential to revolutionize refrigerated transport by reducing reliance on the electrical grid and minimizing overall emissions,” Michael Bodey, director of technology discovery and innovation at Wabash, said in a release. “While many of today’s zero-emission products focus on tailpipe emissions, they still draw power from energy grids, which often rely on non-renewable sources. Our goal is to offer a truly green solution—a well-to-wheel approach—that accounts for the full life cycle of energy consumption, from production to usage.”
Pharmaceutical groups are breathing a sigh of relief today after federal regulators granted many of them more time to come into compliance with strict track and trace rules required by the Drug Supply Chain Security Act (DSCSA).
The regulation was initially scheduled to be required by 2023, but that has been delayed due to the steep logistics and IT challenges of managing the reams of data that must be generated, stored, and retrieved. The most recent target update was November 27, but industry experts say many businesses would probably have missed that date, too.
Facing that reality, the FDA yesterday again delayed that deadline until next year, setting new deadlines for various trading partners: Manufacturers and Repackagers have until May 27, 2025; Wholesale Distributors have until August 27, 2025; and Dispensers with 26 or more full-time employees have until November 27, 2025.
Pharmaceutical businesses quickly cheered the move. “HDA and our pharmaceutical distributor members applaud the FDA’s decision to grant an exemption for the DSCSA’s enhanced drug distribution security (EDDS) requirements for eligible trading partners,” said Chester “Chip” Davis, Jr., president and CEO of the Healthcare Distribution Alliance (HDA), which is an industry group representing primary pharmaceutical distributors, who connect the nation’s pharmaceutical manufacturers with pharmacies, hospitals, long-term care facilities, and clinics.
“While many in the supply chain have made significant progress throughout the stabilization period, some are still struggling to establish data connections. Given the interdependency of the pharmaceutical supply chain, FDA’s phased-in approach will allow supply chain partners to better align their data exchange processes to ultimately achieve full implementation and also acknowledges the progress made thus far,” Davis said.
“As we continue to make progress toward full DSCSA implementation, HDA and our distributor members will remain engaged with our public- and private-sector partners to share information and education, as we move toward our shared goal: helping patients and providers safely access the medicines they need.”